What happens to people who are on welfare or government paid housing for poor people if hyperinflation occurs?
All signs point to deflationary collapse. The govt will then print endless trillions to try and stop it, but none of the money will circulate in local economies. I'm not really sure what happens at that point. I'm guessing a mixture of both. Some things will be getting pumped to the moon while others deflate in price.
It seems like the excess printing would eventually have to spill over to the normal economy, but you can probably collapse before that happens, so their printing basically does nothing in that case.
The US gets hyperinflation only if the market loses confidence in the government. According to people like Armstrong, the excessive printing would be a symptom not the reason for going hyper. Whilst the USD is the (slowly losing grip) reserve dollar, I think you're right, we'll see deflation. Everything points to it: rising rates, overseas economies declining, debt bombs everywhere, taxes on foreign investment withdrawn. If a good ol' recession arrives on the back of King Dollar, we'll see a range of cutting measures: either more 'forward guidance' ( aka "patience") or outright QE4, maybe even helicopter money. This will probably be late 2016 which bodes well for bitcoin - post halving, weakening dollar, hopefully block debate settled and an economic crisis in the making.
So the question is what happens after that? I also have no clue but I guess that it may be when the post 2008 game is up, everybody realizes that there is no recovery and the debt chickens come home to roost. Governments will tax everything that moves & people get the hell out of anything government, piling into everything private (stocks, gold, bitcoin, real estate). Of course we might also go full japanese and muddle along for 30 years.
